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3 years ago

Economics ch 7 What are the 2 barriers to entry in a market

1 answer:

8 0

Two barriers to market entry may include special tax benefits to existing firms and building of a strong brand identity.

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Assuming the preferred stock is cumulative, compute the amount of dividends to preferred stockholders and to common stockholders

dolphi86 [110]

Answer:

The first part of the question is missing, so I looked for a similar question. I'm not sure that it is the same, but it can help you understand how to solve it.

Paid-In Capital:

Preferred Stock—5%, $11 Par Value; 150,000 shares authorized, 20,000 shares issued and outstanding : $220,000

Common Stock—$2 Par Value; 575,000 shares authorized, 380,000 shares issued and outstanding : 760,000

total dividends distributed:

2018: $9,000

2019: $45,000

preferred dividends = $220,000 x 5% = $11,000

Distributed dividends:

2018:

$9,000 in dividends distributed to preferred stockholders, $0.45 per preferred stock.

2019:

$13,000* in dividends distributed to preferred stockholders, $0.65 per preferred stock.

$32,000 in dividends distributed to common stockholders, $0.084 per common stock.

Since preferred dividends are cumulative, if they are not paid off during a certain year, they will have to be paid in the future before any common dividends are distributed.

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3 years ago

Agin i need help

AlexFokin [52]

I believe it is commas but let me verify real quick

6 0

3 years ago

What has the biggest impact on whether a 4 year university is affordable?

Yuki888 [10]

Answer: Federal aid

Explanation:

Federal aid helps students with the cost of tuition for everyone. It allows for students to keep out of major debt.

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3 years ago

Joe Keho and Mike McLain share income on a 6:4 basis. They have capital balances of $90,000 and $70,000, respectively, when Lind

lions [1.4K]

Answer:

Joe’s Capital (existing partner) = $90,000

Mike’s Capital (existing partner) = $70,000

Profit-sharing ratio = 6:4

Admission of Linda (new partner) with bonus to existing partners:

$100,000 cash contributed for 25% share

So, implied value of partnership firm after admission = $100,000 / 25% = $400,000

However, actual value of partnership firm after admission will be = $90,000 + $70,000 + $100,000 = $260,000

Linda’s Capital in new partnership = 25% * $260,000 = $65,000

However, Linda is contributing $100,000

So, bonus accruing to existing partners = $100,000 - $65,000 = $35,000

Bonus to be split in profit sharing ratio

Bonus accruing to Joe = $35,000 * 6/10 = $21,000

Bonus accruing to Mike = $35,000 * 4/10 = $14,000

Joe'sCapital

$21,000

Mike'sCapital

$14,000

Lindia's Capital

$65,000

b. Admission of Linda (new partner) with bonus to the new partner:

$36,000 cash contributed for 25% share

So, implied value of partnership firm after admission = $36,000 / 25% = $144,000

However, actual value of partnership firm after admission will be = $90,000 + $70,000 + $36,000 = $196,000

Linda’s Capital in new partnership = $196,000 * 25% = $49,000

However, contribution by Linda= $36,000

So, bonus accruing to Linda = $49,000 - $36,000 = $13,000

Joe’s share in bonus to Linda = $13,000 * 6/10 = $7,800

Mike’s share = $13,000 * 4/10 = $5,200

Joe'sCapital

$7,800

Mike'sCapital

$5,200

Lindia's Capital

$49,000

6 0

3 years ago

HELP me please

lara31 [8.8K]

Brainly can solve anything

4 0

3 years ago